Assessment Report on the Consolation Placer Property 45 Km Northeast of Atlin, BC

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1 Assessment Report on the Consolation Placer Property 45 Km Northeast of Atlin, BC NTS Location using NAD 83 Base on 1:20,000 Scale TRIM Maps 104 N 084 Centered on 133 degrees 19 W, 59 degrees 48 N And UTM Coordinates using NAD E N Placer Claims Con Placer Con South Placer Atlin Mining Division Claim Owner D. J. Javorsky Operator Jet Gold Corp. Ltd Howe Street Vancouver, B. C. V3M 2K3 Consultant and Author Alex Burton, P. Eng., P. Geo. Consulting Geologist Burton Consulting Inc Seventh Avenue New Westminster, BC V3M 2K3 Tel/Fax: (604) File: consolation/con plcr asmt rpt 2005 April 16, 2006

2 TABLE OF CONTENTS Item Page # Introduction 1 Property definition 1 Access 4 Claims 5 Claims on Which Work Was Done 5 Summary of Work Done 5 A The Upper Section 6 B Rounded Valley Section 7 C Main flat Valley Section 7 D Narrow Section 7 E Fan Section 7 Discussion of Results and Conclusions 8 Cost Statement 8 Authors Qualifications 9 Appendix Invoice Figures Location map Claim map, Regional Claim Map Detail Consolation Creek Upper Portion Consolation Creek Lower Portion Photos 1. Consolation Creek 2. Placer Plant 3. Placer Plant Close Up View 4. Overshot Water Wheel 5. Hoist Winch on Side of Water Wheel 6. Pump Connection Rod From Water Wheel 7. Flume Water Intake From Creek 2

3 INTRODUCTION Prospector David Javorsky optioned the placer and lode claims to Jet Gold Corp. Ltd., who commissioned Burton Consulting Inc. to explore the claims. The claims were explored from July 31, 2005 to August 8, 2005 with a field crew of three personnel. This report covers these placer claims. A program of work to explore the stream gravels is recommended as a result of the field investigations. PROPERTY DEFINITION The Consolation Creek Placer Property is at the north end of the Atlin, B. C. placer district. History of the camp as outlined in GSC Memoir 307 states that gold was probably discovered in 1896 and when the 1898 news of the Klondyke became public Miller and Mclaren went to the area and staked the previously known gold on Pine Creek. Pine Creek has been the major producer in this camp followed by Spruce Creek and a few other mainly tributary creeks. The camp originally was hand worked by as many as 5,000 miners, but soon was reduced greatly in numbers when easily worked areas were finished. Then mechanical operations were applied such as dredging, hydraulic monitoring and later mining with heavy equipment such as bulldozers and even more recently excavators. A northeast southwest zone about plus 30 miles (50 Km) long, from four to twelve miles (6 to 20 Km) wide covers most of the productive placer drainages. The Consolation Creek placer is near the north end of this productive zone. This camp has been noted for the complexity of the gold bearing gravels and the sequence of glacial tills and associated fluvial materials. Most workers conclude that the most productive gravels are Late or post Tertiary and pre glacial in origin. There is also considerable evidence that at least a significant portion of the better grade placer gravels have been reworked. Commonly the Yellow gravels are considered to be older and better in grade. Most of the gravels with at least some gold are themselves covered in part by later glacial tills and fluvial glacial material. The productive drainages coincide with Pennsylvanian and Permian core of Atlin Intrusions surrounded by the Cache Creek Group. All the placer streams drain this group of rocks. The Atlin Intrusions consist of peridotite, meta diorite, meta gabbro; ( unit 9a) serpentinite; (unit 9b) carbonatized serpentinite; and (unit 9c) talc bearing ultrabasic rocks. The Cache Creek Group consists of three sections: (1) the sediments (unit 6), (2) the volcanics (unit 7), (3) the limestone (unit 8). These units 6, 7 and 8 generally appear to envelope unit 9. Both are usually considered to be the somewhat enigmatic source of the gold. 3

4 Some pay gravels are covered by the more recent basalt lava flows. Recent news releases by Prize Mining Corp. have reported bonanza type gold grades in Listwanite hosted rocks in Pine Creek in the Rock of Ages zone and the Yellowjacket zone. There have been small spectacular gold bedrock values in this area reported since Many gold deposits along the North American Cordillera are hosted in Permian or equivalent rocks similar to the suite in the Atlin camp. Thus it seems logical to assume that they are the source of the gold placers developed where accumulation factors were present. Consolation Creek has a boulder pavement which the creek drains through. The boulders are from Unit 13a, the Cretaceous age alaskite found in outcrop farther upstream on the northeast upper slope of Mt. Barham.. It is this pavement that made hand mining difficult as the intrusive boulders can be a couple of metres across. Mr. J.C. Walters did the most impressive hand work on the creek. He built a cabin in the creek valley and had a water powered sawmill about a half mile downstream from the cabin and sank two vertical shafts just upstream from the cabin. The shaft sinking, water pumping and sluicing were all powered by an ingenious hand built water wheel. Sluiced material lifted from presumably the gutter floor of the creek bed contained mostly the Permian rocks. It was locally assumed that he mined along the high grade gutter portion of Consolation Creek, and as he stayed there for many years that he produced enough gold to live on, or as rumored, a lot of coarse gold. A couple of Permian age rock outcrops close to the creek valley confirmed that a large part of the valley and headwater area is underlain by the host rock for the lode and also placer deposits. There appears to be enough of the favourable factors present, plus the fact that gold has been produced from Consolation Creek to consider testing the creek bed for an economic placer deposit. BC Minister of Mines Annual reports and Geological Survey of Canada reports cover the earlier years of this camp. The 1953 report by J. M. Black for the BC Ministry of Mines is an excellent report. This was followed by the GSC Memoir 307 by J. D. Aitken in In 1976 Peter and Wendy Proudfoot reported on the stratigraphy of the Atlin placers for the BC Ministry of Mines. These three papers proved to be an invaluable starting point in the study of the Consolation Creek placer. ACCESS The claims are about 45 Km northeast from the town of Atlin, in northwestern B.C. During the heyday of production Atlin was connected to the system of interconnected 4

5 lake steamers with the Yukon and White Pass Railway to the ocean at Skagway Alaska. Since World War II and the building of the Alcan Highway the town has been connected to the continental highway system. The road from Atlin goes north to Jakes Corner and one can travel northwest to Whitehorse, or east to the outside. Atlin is about 4 hours drive from Whitehorse which has jet air travel, or three days from Vancouver or Edmonton by vehicle. From Atlin take Highway 7 north for 8 Km to cross Fourth of July Creek and continue to Km 10 at the turn off to the right or east. This turn off is signed to Ruffner Mines and to McDonald Lake. Continue for about 40 Km past the divide between Fourth of July Creek and Consolation Creek, and start up the Consolation Creek road turn off to the south. Note that the main road continues east towards Gladys and Surprise Lakes. Go south on the Consolation Upper Creek road about 2.5 Km to where during the 2005 exploration work it was decided there should be constructed a side road leading easterly to the old placer workings of Mr. Walker where the 2006 exploration is proposed. Note that the road continues south for another 4.5 Km to the confluence of the upper streamlets that become the main Consolation Creek. At this upper point there some old placer exploration pits and an old camp and a trail that lead to the old Crown grant mineral claims L70 and L71. CLAIMS Con Placer tenure # Con South Placer tenure # CLAIMS ON WHICH WORK WAS DONE Con Placer tenure # Con South Placer tenure # SUMMARY OF WORK DONE The claims were field examined over a period of three days from August third to fifth, 2005 by a crew of three. The complex set up in the 1920 s and 1930 s to mine the gutter gravels by Mr. Walker was examined. It consisted of an older abandoned vertical shaft dug into the valley floor gravels at 1220 metres elevation. It appeared that this location was too near the present course of the creek and may have made dewatering his shaft more difficult. In any event, he moved his shaft site closer to the west side of the creek floor where he erected a large log and sawn plank building. Within this building he erected a flume to carry the creek water from an upstream ditch flume to a twelve foot overshot water 5

6 wheel. The water wheel powered two reciprocal pumps each on long vertical poles connected to a walking beam reaching down the side of the shaft being dug from inside the building. To hoist the gravel from the shaft he had a pulley on the side of the water wheel that acted as a winch to pull up a skip bucket made of steel that would hold less than a cubic yard. The skip bucket had side spurs which rotated the skip near its upper travel to tip the skip contents into the upper portion of the sluice box. When he had accummulated enough gravel he operated a shunt panel to divert the ditch water from going to the water wheel and now to the sluice box. A diverter upstream on the ditch canal allowed him to keep water from entering the flume when he was not operating any of the equipment. He built a cabin just downstream from the shaft building. About a quarter mile downstream he built a water powered sawmill to produce the lumber he needed. Apparently he was able to provide a nice life for his family. He died alone at his cabin sometime before An operation of such sophistication showed a high quality of engineering and it is unlikely that such a great deal of effort would have been continued for so long without reward. The washed gravels below his sluice box consisted of Permian rocks with little of the younger intrusives. It appears that the large intrusive boulders form a pavement overlying the Permian rock pay gravel. Consolation Creek which flows north in the section investigated has a headwaters (Upper Section), intermediate headwaters (Rounded Valley Section), main section (Main Flat Valley Section), narrow lower section (Narrow Section), and fan base section (Fan Section) at the end of its north direction where it turns to flow east in a major valley. Each of these sections was investigated in the field, and with the aid of stereo air photos from 1951, 1974, and 1975 so that the limits of each section were identified. A. The Upper Section The Upper Section is in the high elevation south end of the creek in its headwaters. Valley slopes are gentle and gradual with uniform gradients both cross wise and longitudinally. The slopes are almost uniformly covered with a layer of glacial sediments which are deeply dissected where the most important junior tributary comes in from the east. This section goes upstream from the point of joining with the first tributary at elevation 1320 metres up to 1380 metres. The gradient of this upper section is 60 m in a distance of 1000 metres run of the creek or a slope of 1:16.6. Another group had dug a few pits in this section, but they only encountered glacial materials that showed little sign of fluvial reconcentration. 6

7 B. Rounded Valley Section The rounded valley section goes downstream, or north, from an elevation of 1320 m in the creek bed to 1260 m elevation. This section is 500m long in rounded valley walls and floor and is above the level of the slope sediments overlying Section Two. It has a drop of 60 m in a run of 1500 m for a slope of 1:25. C. Main Flat Valley Floor Section The main section is where Mr. Walker had his placer mining operation. It has the widest flat floor and is the longest single section in Consolation Creek. It goes from an elevation in the creek bed of 1260m down to 1120m, a distance of 2000m. That is a drop of 140m for a run of 200m for a slope of 1:14.3. The creek meanders across the valley floor which is over 100m wide. The creek is not incised and the valley has stable slopes above it. This is the first section that should be tested for placer mining with a series of large excavater pits. The excavater should be large enough to move the big boulders. A sufficient amount of gravel needs to be run at each test site to average the volume effect of the boulders in calculating grade per cubic metre. After this zone is tested the other zones both upstream and downstream can be tested. D. Narrow Section The narrow section covers the intermediate portion between the main stream bed and the large east west valley that the creek drops into. This section cuts through the side deposits of the main east west valley and probably will be lower grade then the main section upstream. E. Fan Section The fan section is a triangular dump delta fan of low angle where the creek changes direction often through the fan. It may have better gold values than the Narrow Section, and certainly will have larger volumes with a grade expected to be somewhat better than the Narrow Section. 7

8 DISCUSSION OF RESULTS AND CONCLUSIONS. The main section should be tested with a series of excavater pits. Gravel from each depth portion should be run through a test sluice to accurately determine grade. If the main section proves to carry interesting amounts of gold the other sections of the creek should be tested. COST STATEMENT The statement in the appendix is a copy of the invoice for the 2005 job done on the Consolation Creek placer and lode claims. It was paid by the client, Jet Gold Corp. Ltd. Burton Consulting Inc. used the following personnel on both parts of the job: Alex Burton, P. Eng., Geologist Cathy Burton, Field Assisstant David Javorsky, Prospector, Placer Miner. The total invoice was $11, of which $ was applied to the placer claims assessment filings. 8

9 AUTHOR S QUALIFICATIONS The author, Alex Burton, P. Eng., P. Geo., is a Consulting Geologist and President of Burton Consulting Inc. I am a graduate of the University of British Columbia in Geology 1954, and am registered as a Professional Engineer and Geoscientist with the Association of Professional Engineers of BC, #6262. I am a founding Member of the Association of Exploration Geochemists (now called Association of Applied Geochemists.) I am a life member of the CIMM and of AGID. I annually teach the Placer Mining Course given at BC Institute of Technology jointly by BCIT and the AME, and have done so for over 15 years. I have examined more than 300 placer properties during my career. I supervised and took part in the exploration work on the Consolation Placer Property in 2005 on a daily basis. I have over fifty years of mining exploration experience. Alex Burton, P. Eng., P.Geo Consulting Geologist April 18, aburton@shaw.ca Tel/Fax: (604) File: con plcr asmtrpt2005.doc 9

10 APPENDIX Nov. 13, 2005 Mr. Bob Card Jet Gold Corp. Ltd., Howe Street Vancouver, B.C. BURTON CONSULTING INC Seventh Avenue New Westminster, B.C. V3M 2K3 Tel/Fax: (604) I N V O I C E RE: CONSOLATION CREEK PROPERTY, ATLIN AREA, B.C. GST EXPENSES 31-Jul-05 3 lunches - Sally's Café, Junction Rancheria Motel - Gas (2 trucks) Teslin Lake Motel - 2 rooms Teslin Lake Motel - 3 breakfasts A.Burton 1/2 $ C.Burton 1/2 $ D.Javorsky 1/2 $ /1/2005 Teslin Lake Motel - 3 breakfasts Teslin Lake Motel - gas (2 trucks) Twilight Café, Atlin - 3 lunches Atlin Trading Post - groceries Atlin General Store - Topo maps Atlin General Store - 2 tarps Twilight Café, Atlin - 3 dinners A.Burton 1 $ C.Burton 1 $ D.Javorsky 1 $ /2/2005 Twilight Café, Atlin - 3 dinners Shell Canada - gas A.Burton 1 $ C.Burton 1 $ D.Javorsky 1 $ /3/2005 Shell Canada - gas Twilight Café - 3 dinners ICBC-trailer licence & Ins.-D.Javorsky A.Burton 1 $ C.Burton 1 $ D.Javorsky 1 $ /4/2005 Atlin Trading Post - groceries Twilight Café - 3 dinners /5/2005 A.Burton 1 $ C.Burton 1 $ D.Javorsky 1 $ Shell Canada - gas Twilight Café - 3 dinners

11 PAGE 2. GST EXPENSES 8/6/2005 A.Burton 1 $ C.Burton 1 $ D.Javorsky 1 $ The Atlin Inn - 5 nights - 3 people Wolf it Down - 2 dinners Northern Beaver Post - 2 people accomm Shell Canada - gas Shell Canada - gas - Javorsky Jakes Corner - 2 lunches Swift River Lodge - gas /7/2005 A.Burton 1 $ C.Burton 1 $ Wolf it Down - 2 breakfasts Northway Rest - 2 lunches Super Value - gas Bell II Lodge - 1 night Bell 2 Lodge - gas Bell 2 Lodge - dinner /8/2005 A.Burton 1/2 $ C.Burton 1/2 $ Bell 2 Lodge - 2 breakfasts Copperside Foods Red Truck 10 $50/day ATV's for 10 $55 ea , $.20/km /12/2005 Chevron - gas /14/2005 ALS Chemex - stream sample analysis ALS Chemex - rock assay /27/2005 Air Photos Maps $ $11, Thanks, Alex Burton, P. Eng. Consulting Geologist GST # RT0001 File: Consolation Creek Inv. #1 11

12 Consolation Creek Location Topographic Layers Lakes 1:6M Rivers 1:6M BC Border Layers BC Border 1:6M Consolation Creek Map Center: N W N SCALE 1 : 11,850, MILES Friday, April 21, :19 AM

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